NFGAB.ST WACC - Weighted Average Cost of Capital
The WACC of Nordic Flanges Group AB (publ) (NFGAB.ST) is 7.6%.
| Range | Selected | |
| Cost of equity | 8.7% - 11.4% | 10.05% |
| Tax rate | 4.8% - 10.1% | 7.45% |
| Cost of debt | 6.4% - 7.0% | 6.7% |
| WACC | 7.1% - 8.2% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.5% | 3.0% |
| Equity market risk premium | 5.1% | 6.1% |
| Adjusted beta | 1.21 | 1.29 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 8.7% | 11.4% |
| Tax rate | 4.8% | 10.1% |
| Debt/Equity ratio | 1.73 | 1.73 |
| Cost of debt | 6.4% | 7.0% |
| After-tax WACC | 7.1% | 8.2% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| NFGAB.ST | Nordic Flanges Group AB (publ) | 1.73 | 0.43 | 0.16 |
| ALTRI.PA | Trilogiq SA | 0 | 0.56 | 0.56 |
| BIOSK.AT | Unibios Holdings SA | 0.24 | 0.63 | 0.51 |
| ENI.WA | Energoinstal SA | 0.56 | 0.85 | 0.56 |
| HDR.WA | Przedsiebiorstwo Hydrauliki Silowej Hydrotor SA | 0.66 | 0.42 | 0.26 |
| PCOM B.ST | Precomp Solutions AB (publ) | 0.99 | 0.93 | 0.48 |
| RAF.WA | Fabryka Obrabiarek Rafamet SA | 0.09 | 1.89 | 1.75 |
| TCN.L | Tricorn Group PLC | 3.92 | 0.74 | 0.16 |
| TUCLK.IS | Tugcelik Aluminyum ve Metal Mamulleri Sanayi ve Ticaret AS | 0.48 | 0.78 | 0.54 |
| UUTEC.HE | Plc Uutechnic Group Oyj | 0.07 | 0.76 | 0.72 |
| Low | High | |
| Unlevered beta | 0.5 | 0.55 |
| Relevered beta | 1.31 | 1.43 |
| Adjusted relevered beta | 1.21 | 1.29 |
NFGAB.ST's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for NFGAB.ST:
cost_of_equity (10.05%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (1.21) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.